The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Monday Biotech Deal Review: October 18, 2009

B&W_BigNickelThis week’s deal review has a big bought deal for IMRIS (and RBC), the details of Cardiome’s successful offer, and some follow-through for MethylGene and BioSyntech. 

IMRIS’ $18 million bought deal

IMRIS Inc. (TSX: IM), provider of imaging solutions including magnetic resonance and fluoroscopy, entered into a bought deal to issue 3,125,000 common shares at a price of $5.60 per common share for gross proceeds up to $18 million, or $20.7 million if the over-allotment option is fully exercised.  The underwriting syndicate is led by RBC Capital Markets. Keep an eye on IMRIS’ filings here for the prospectus.

Cardiome Details

As we noted on Twitter at the time, Cardiome Pharma Corp. (NASDAQ: CRME) (TSX: COM) announced preliminary results of its modified Dutch Auction to purchase for cancellation USD$27.5 million of its common shares. More than $27.5 million of Cardiome’s common shares were validly tendered, allowing Cardiome to purchase 6,470,588 shares at the bottom end of the announced range — $4.27 per share. The purchased shares represent about 9.7% of the outstanding common shares, resulting in 60,163,885 common shares remaining issued and outstanding. There’s no deemed dividend because the PUC exceeded the purchase price.

Follow-Through for MethylGene and BioSyntech

  • As anticipated in connection with the extension of their collaboration, MethylGene Inc. (TSX: MYG) and Otsuka Pharmaceutical Co., Ltd. both announced (here’s MethylGene’s release, here’s Otsuka’s release) that pursuant to their research collaboration and license agreement Otsuka is purchasing 3,686,182 common shares for about $0.43 per share for gross proceeds to MethyGene Inc. of $1,573,410. Following this acquisition, Otsuka will own approximately 9.13% of MethylGene’s issued and outstanding shares.
  • BioSyntech Inc. (TSX: BSY)  made three announcements on Friday:
    • The closing of its rights offering for proceeds of $3.1 million. 140,284 units were issued to shareholders, and 169,716 were purchased by ProQuest Investments III, L.P., Solidarity Fund QFL and Highland Crusader Offshore Partners, L.P. pursuant to stand-by agreements;
    • Conditional approval from the TSX for the amendment of terms of warrants issued to the public in July 2008 that will allow cashless exercise; and
    • The resignation of Mr. Lee Brown from Highland Capital Management’s seat on the board of directors effective October 16, 2009.

Thanks again to Jacob Cawker for his help with this week’s Deal Review!

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One response to “Monday Biotech Deal Review: October 18, 2009

  1. Pingback: Monday Biotech Deal Review: November 9, 2009 « The Cross-Border Biotech Blog

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